Freedom's Square

The Second Crisis of Socialism

2011-10-12T21:45:00.000-04:00

Trader Dan's Market Views: Random Thoughts on the Passing Scene

2011-06-25T21:33:00.000-04:00

Trader Dan's Market Views: Random Thoughts on the Passing Scene: "In some private emails I have received some of the writers have expressed fears of a 2008 type meltdown in the precious metals whenever they..."

RealClearPolitics - True Job Creators Need a Voice

2011-06-15T22:06:00.001-04:00

RealClearPolitics - True Job Creators Need a Voice

Excellent article explaining the pitfalls of government regulation on a new generation of entrepreneurs. The real engine to job recovery is not in Washington and it never has been.

Effective GOP Video on State of the Economy

2011-06-14T23:07:00.001-04:00

While I am becoming more Libertarian, this GOP video is pretty good. Bottom line, the GOP needs to do more than make commercials if they are going to take leadership on this issue.

The Next Financial Crisis by Gary North

2011-06-12T10:11:00.001-04:00

The Next Financial Crisis by Gary North

The mainstream financial media are running stories on the next financial crisis. This is unheard of two years into a so-called economic recovery. So weak is this recovery that the old pre-2008 confidence has not returned.

The Daily Bell - Jim Rogers: 2008 Was Bad ... Next Time Will Be Worse!

2011-06-12T10:08:00.000-04:00

The Daily Bell - Jim Rogers: 2008 Was Bad ... Next Time Will Be Worse!

Obama gets an economic jolt - The Washington Post

2011-06-05T19:53:00.000-04:00

Obama gets an economic jolt - The Washington Post

Obama made a stop in Ohio to focus on the importance of the "private sector" being the lead for starting the economic recovery. In a word, duh - but do not be fooled. Obama will probably use private sector rhetoric as the framework for promoting QE II and III since he believes only the government can light the spark necessary to begin growth. The only thing cheap money will spark is the firestorm of creditors divesting themselves of US bonds.

Diminishing Returns

2011-06-01T17:57:00.001-04:00

Our nation was founded on the principle of preserving individual liberty and individual freedoms through a social contract. That vision is eroding. Americans today are being born, not into a social contract, but into social servitude enforced by the power of the Federal Government. Our incomes are routinely raided and private property and personal privacy are empty concepts thrown around in vain attempt to convince ourselves they still exist.

I began thinking about writing this post after seeing commercials aired by the Democratic National Committee in response to Congressman Paul Ryan’s legislation to reform healthcare. The commercials depict the elderly or the disabled being murdered by an unidentified white male. The voice-over in the commercial infers that the white male is a Republican, who identifies with Congressman Ryan’s plan, and therefore there is no moral difference between murder and Congressman Ryan’s proposed legislation. Personally, I found the commercials so juvenile that I thought they were part of a comedy sketch. When I discovered the commercials were serious attempt at political dialogue, I wondered why anyone would take anything so devoid of intellectual foundation seriously.

But people are taking the commercials seriously. Congresswoman Debbie Wasserman-Shultz is the head of the Democratic National Committee. Her rhetoric in policy discussions matches the commercials. In short, Ms. Wasserman-Shultz contends that Republicans, i.e. fiscal conservatives, are proposing that, as a nation, we murder the old, the disabled, the weak, and any others who can fit into her narrative of fear. She also has spent time on the road declaring that Republicans are anti-woman – whatever that means.

I remember walking to work one day and a mentally unstable individual was standing on a street corner announcing to the world that the US Government, lead by the CIA, was trying to kill him. In my opinion, Ms. Wasserman-Shultz’s rhetoric is the same thing; paranoid and unsubstantiated ramblings about a broadly defined, nefarious group bent on murder. In this case, she is referring to Americans who are advocating for fiscal conservatism and reform of the entitlement state. Her catch phrase is, “they want to end medicare as we know it.”

It’s too bad the America “as we knew it” is ending. As a society, we have now placed the State above the individual and have reinforced this ideology through the election of strong, statist advocates. Private property and personal privacy rights are quickly evaporating under the imperator of the “commonwealth” or national security. Kelo v. City of New London is a perfect example of private property being “taken” in the name social betterment. Kelo is an embarrassing extension of jurisprudential absurdity found in the New Deal era case, Wickard v. Filburn. In Wickard, perfectly legal behavior by a private citizen on his own land was supplanted because it ran contrary to the philosophy of the State.

It is Politicians like Obama and like Debbie Wasserman-Shultz who want Americans to rely on bloated, unaccountable, and poorly administrated government programs for their safety and security. They down play the role of the private sector and cast suspicion on for-profit entities. And anyone who wants to reform or trim entitlement programs is morally equivalent to a murderer.

At some point, by necessity or opportunity, American politicians are going to have to a serious debate on reforming run away spending and entitlements in this country. But don't hold your breath. The votes-for-handouts machine still has some life in it.

Past Peak Oil - Why Time Is Now Short - Blogs at Chris Martenson

2011-05-28T23:51:00.000-04:00

Past Peak Oil - Why Time Is Now Short - Blogs at Chris Martenson

Guest Post: The Economic Death Spiral Has Been Triggered

2011-05-27T22:13:00.000-04:00

Guest Post: The Economic Death Spiral Has Been Triggered

NYSE’s Niederauer on the Decline in U.S. Listings - Deal Journal - WSJ

2011-05-26T23:18:00.000-04:00

NYSE’s Niederauer on the Decline in U.S. Listings - Deal Journal - WSJ

How regulation strangles growth.

Calculated Risk: Lawler: Census 2010 Demographic Profile: Highlights, Excess Housing Supply Estimate, and Comparison to HVS

2011-05-26T23:12:00.000-04:00

Calculated Risk: Lawler: Census 2010 Demographic Profile: Highlights, Excess Housing Supply Estimate, and Comparison to HVS

A hollow currency coupled with poor housing numbers is not a good combination.

Welcome To Hyperinflation Hell: Following Currency Devaluation, Belarus Economy Implodes, Sets Blueprint For Developed World Future

2011-05-25T20:00:00.000-04:00

Welcome To Hyperinflation Hell: Following Currency Devaluation, Belarus Economy Implodes, Sets Blueprint For Developed World Future

Trader Dan's Market Views: Investors looking to the Fed for stimulus again?

2011-05-25T19:55:00.000-04:00

Trader Dan's Market Views: Investors looking to the Fed for stimulus again?: "It is perhaps a bit premature to jump to conclusions but today's price action in the overall commodity sector seems to be signaling that a s..."

Paranoia Is Good for You - Wendy McElroy - Mises Daily

2011-05-23T21:45:00.000-04:00

Paranoia Is Good for You - Wendy McElroy - Mises Daily

An interesting article on soft tyranny.

What Obama Does Not Understand

2011-05-22T21:00:00.000-04:00

"I have been involved in the battle against terrorism for most of my adult life - first as a soldier in the special forces of the Israeli Army, then as one of the founders of an institute devoted to the study of terrorism, and later as a diplomat seeking to forge an alliance of free nations in the active effort to defeat international terrorism."

These words were written in 1995 by Benjamin Netanyahu in his book, "Fighting Terrorism." It has been 16 years since Mr. Netanyahu wrote these words and his book was dead-on about the future of terror, the United States, and a nuclear Iran. It is clear from one sentence that Mr. Netanyahu's life has been about confronting terror and the threat is poses. And his experience with terror is not just professional, it also personal. Mr. Netanyahu lost his brother, Jonathan Netanyahu, during the 1976 raid on Entebbe, Uganda that rescued 103 hostages from military strongman and dictator, Idi Amin.

So I suppose that is why I could not contain my laughter this week during Netanyahu's visit to the United States. When comparing world leaders on the subject of security, there is no comparison. Obama's understanding of security is what someone else tells him it is. It's academic, sterile, and anecdotal. Obama's resume compared to Netanyahu's on this subject is nothing less than pathetic. I suppose that is why I found it so amusing to try and watch Obama lecture Netanyahu on the need for Israel to return to the 1967 borders. While Obama thought he was being statesmen like, he simply embarrassed himself.

It is clear Obama had no idea what it meant to tell Israel to return to their 1967 borders or the ramifications that flowed from his demand; it was just another line, in another speech that sounded good at the time. Obama's clear back peddling and tap dancing in his May 22 AIPAC (American Israel Public Affairs Committee) was the culminating event in an embarrassing week of gaffes, blunders, and moronic statements. Of course, on Monday morning the Washington Post will report that Obama's policy convulsion on Israel's borders were either a nuance or a caveat. What a joke.

From a schadenfreude perspective, 70% of the American Jewish population voted for Obama. So as far as I'm concerned, you got the President you deserve. I don't really care how the AIPAC speech went, since AIPAC relies on Conservatives for providing billions in defense dollars and then votes for Democrats. It is not for you that I support Israel, but for Israelis like Mr. Netanyahu who will wake up tomorrow and face another day of bombs, bullets, and idiotic, uniformed, amateurish American politicians.

Victor Sperandeo talks about precious metals and the world economy with James Turk

2011-05-22T19:19:00.001-04:00

Victor Sperandeo talks about precious metals and the world economy with James Turk

John Rubino: Get Ready For Accelerating Devaluation of All Fiat Currencies - Blogs at Chris Martenson

2011-05-22T13:06:00.000-04:00

John Rubino: Get Ready For Accelerating Devaluation of All Fiat Currencies - Blogs at Chris Martenson

"What is happening now is we are exporting our inflation to the rest of the world. We are forcing countries like Brazil and China to endure the pain that we should be enduring. Brazil’s interest rates are like 12% right now. China is doing something new every couple of days to scale back bank lending, spending domestically, and everything. They are countries where a big part of the population makes just a few dollars a day. Rising food and energy prices are devastating for these guys. They do not really control the global price of energy and food, yet they have to endure the pain of slowing their economies down and throwing people out of work. Have them have to spend more and more of their money on food and energy so we can keep on borrowing and growing. The government can keep on spending as much as they want to here.
Clearly that is unsustainable. At some point these countries are going to say “No, we want our currencies to depreciate, too. We want to be able to continue to export to you.” So what we will end up with is sort of like what happened in the Depression. Everybody was trying to cut the value of their currencies at the same time. What that leads to, obviously, is global inflation, instead of just localized inflation where a few countries are debasing their currencies. You have got everybody doing it at once. That is because the US, with the world’s reserve currency, basically controls this process. We have chosen to decrease the value of the dollar dramatically over the next few years. That is going to force the rest of the world to do the same thing or endure a rocketing economy or a rocketing currency value and recession. No elected politician can put up with that.

Ron Swanson explains taxes to a young student

2011-05-20T23:10:00.000-04:00

This guy is by far the best character on network television today!

NIA presents "College Conspiracy"

2011-05-15T20:28:00.004-04:00

Not long ago, it was said that higher education was the path to success. Today, with the average student graduating with $24K in loans subsidized by Uncles Sam, this is no longer the case. Tuition rates continue to skyrocket despite a slowdown in the economy, and return on investment is being called into question.

The video makes some interesting points, however, be aware of some of NIA's self-promotion.

You know it's bad when...

2011-05-15T19:04:00.000-04:00

From Zero Hedge:

The Central Bank of Zimbabwe is now evaluating introducing a gold-backed Zimbabwean dollar, and, in keeping with the Salvador Dali feel to the past 48 hours, that the "days of the US dollar as the world's reserve currency are numbered."

Obama Spiking the Football?

2011-05-11T20:38:00.000-04:00

A friend told me a story about legendary college football coach, Joe Paterno. Paterno tell his players, “when you get to the end zone, act like you’ve been there before.” That’s a lesson that Obama should heed.

So with Osama dead, Obama has now embarked on his national, “I killed Osama, re-elect me tour!” The sappy, lefty Hollywood types, who once derided Bush for his knuckle dragging tactics, have been oddly silent as Obama goes coast to coast boasting about how, “he” and “I” and “me” was solely responsible for the death of Osama. I credit Michael Moore for not remaining silent on this issue. Of course the SEALS did their part, and we can thank them because Joe Biden blew their cover and gave them all the praise they could never want. However, while Obama is spiking the ball over and over, no one mentions that under Bush 575 soldiers were killed in Afghanistan. Under Obama, 915 soldiers have been killed in Afghanistan ---- Spike the ball again…wait…what? I guess the press will ignore that for the moment because it is not convenient to the re-elect Obama narrative they have set. (Consider the AP's poll showing Obama with a boost in approval ratings to 60 percent. However, if you looked closely, you will notice that the poll has a 17 point slant for Democrats.)

It’s hard to imagine Obama as a hawkish, God bless America President unless your memory cuts out at about 15 minutes. I could write about for pages about this, but listen for yourself.

I suppose this administration is happy this peach fell into their lap. This is a close to military service as many of them will ever get. Six months ago the military was a bunch of bigoted homophobes, but now they are superheroes. With the death of Osama, Democrats now get to flex their muscles and talk about their victory in a war they have never supported, fought by men they have disparaged, called war criminals, torturers, and murderers. Obama and friends will now be memorialized in his awkward and staged situation room photo. For aging liberals, this is going to be the new Woodstock and will probably breed a new era of liars… I was there, man!

I would probably be depressed about all this until I read the following in an email, “Thanking Obama for killing Bin Laden is like going into McDonald's and thanking Ronald McDonald for the hamburger... It's the guy making the burger that should get the credit, not the clown.”

Chimerica's Slippery Slope to Stagflation_English_Caixin

2011-05-07T13:47:00.000-04:00

Chimerica's Slippery Slope to Stagflation_English_Caixin - Recommended reading

As my friend Free Market points out in his post, "In the end, Osama Wins" a giant welfare and and warefare state are not benchmarks for freedom. This sentiment is echoed by Andy Xie in his article for Caixin online. Mr. Xie writes, " Healthcare, the financial sector and the military industrial complex account for about 30 percent of the U.S. economy – more than twice the levels found in other developed economies, or in the United States three decades ago. This suggests the United States is carrying a 15 percent extra cost to generate the same output. Of course, the economy should be slow.

But the U.S. government is trying to simulate the demand side to solve a supply-side problem. That doesn't resolve the problem but instead creates a new one – inflation. No amount of monetary stimulus by the Fed can bring high growth back to the United States, in my view."

I highly recommend this article for your review.

In the end, Osama wins

2011-05-02T21:04:00.004-04:00

Today, with the new of Osama bin Laden's death, I noticed a lot of celebrating today on the news channels, in the workplace, and on Facebook. I wasn't one of them; I stayed out of the discussions. Had bin Laden been killed or captured a few years ago, then maybe I'd feel different. Today, I feel nothing.

A decade after 9/11, the U.S. is still fighting in Afghanistan, Iraq, and now Libya. Our deficits are out of control, with our currency rapidly depreciating, along with our economic and civil liberties. What kind "freedoms" are the soldiers fighting for these days? To be groped by the TSA and have the IRS enforcing a new healthcare mandate? It puzzles me that so many of us get caught up in the moment without looking at the big picture.

This isn't a victory. And like the unwinnable war on drugs, another leader will rise to take Osama's place with revenge on his mind. Neither a large warfare or welfare state equals freedom.

Federal Revenue and Spending: Budget Chart Book

2011-05-01T18:32:00.000-04:00

Federal Revenue and Spending: Budget Chart Book

Recommended for those of you who like charts.

Advice from Jim Rogers

2011-05-01T16:32:00.003-04:00

In this interview with Brett Owns, down-to-earth billionaire Jim Rogers covers the following topics:

Still a Bull on China, and the Renminbi Too
Commodities Should Remain Hot
Bearish on the US and UK – Crisis Soon?
Does the End of QE2 Really Matter?
Actions to Consider – Investing and Personal

When I started taking charge of my own money, Mr. Rogers was the one of the people I looked to for how to spot the long-term trends in commodities. Always humble, always entertaining, Rogers has an excellent grasp of Austrian economics and believes that farming is once again a top profession to be in.

Angst in the United States: What's wrong with America's economy? | The Economist

2011-05-01T10:14:00.001-04:00

Angst in the United States: What's wrong with America's economy? | The Economist

This is an excellent article worth reading from the Economist. I think it gives a good perspective of our current financial mess and how our leaders are missing the mark. While I do not agree with the proposed European style remedies to our problems, I think the author hits the nail on head identifying the mess of our current tax structure and empty misguided policies like subsidies for green technology.

Good economic podcasts for the weekend

2011-04-30T12:39:00.002-04:00

Korelin Economics Report

Al Korelin has interview segments with James Turk, founder of GoldMoney.com and Jeff Deist, chief of staff for Ron Paul. He also profiles some great companies involved in commodities. I never miss his podcasts, which are broadcast six days a week.

The real White House Easter Egg Hunt

2011-04-30T11:51:00.000-04:00

Mercatus Center Paper on Debt Ceiling

2011-04-28T23:34:00.000-04:00

Excellent read on why not raising the debt ceiling can work.

The Tax Foundation - U.S. Corporations Pay $100 Billion in Taxes on Foreign Profits

2011-04-28T22:48:00.000-04:00

The Tax Foundation - U.S. Corporations Pay $100 Billion in Taxes on Foreign Profits

Why does it make sense to pay the tax man twice? In short, it doesn't.

YouTube - Ayn Rand - Liberty vs Socialism

2011-04-28T22:32:00.001-04:00

YouTube - Ayn Rand - Liberty vs Socialism

While I have never adopted Objectivism in total, this 8 minute interview is worth a view.

Peter Schiff comments on Berananke's press conference

2011-04-27T23:39:00.003-04:00

One of my favorite websites for financial news is King World News, run by successful investor Eric King, who funds the site entirely himself (If only I could be so lucky!).

Here is an excerpt from Eric's interview with Peter Schiff, where Schiff discusses where he sees the dollar going.

Federal Reserve: Bernanke: Fed Sees Slower Growth, Uptick in Inflation - CNBC

2011-04-27T20:04:00.001-04:00

Federal Reserve: Bernanke: Fed Sees Slower Growth, Uptick in Inflation - CNBC

Looming inflation, a sinking dollar, and increasing food and gas prices are a recipe for very bad things. I hope the President's campaign trip to meet with Oprah is worth it. One another note, gold hit record high again today and that is no accident either.

Obama has ‘better stuff’ to do than birth certificate ‘sideshows’ | Front Row Washington

2011-04-27T20:01:00.000-04:00

Obama has ‘better stuff’ to do than birth certificate ‘sideshows’ | Front Row Washington

I agree with the President that he has better things to do than dig for his birth certificate. Unfortunately, he is spending his time on equally fatuous activities in the form of campaign events like going to see Oprah. Our President is not engaged in the business of governance and there is little time to dither in the face of a serious financial crisis.

RealClearPolitics - Terrorists Don't Belong in Civilian Courts

2010-11-19T16:40:00.000-05:00

RealClearPolitics - Terrorists Don't Belong in Civilian Courts

Webb moves to the center as he faces a tough reelection season.

Weaker Dollar Seen as Unlikely to Cure Joblessness - CNBC

2010-11-16T19:26:00.000-05:00

Weaker Dollar Seen as Unlikely to Cure Joblessness - CNBC

How can serious publications print articles like this? Of course a weaker dollar with less buying power is not the answer. STOP PRINTING MONEY!!!! Head-to-desk....head-to-desk.....

CNBC's Fast Money: Secret Walmart Survey Shows Inflation Already Here - CNBC

2010-11-13T07:13:00.000-05:00

CNBC's Fast Money: Secret Walmart Survey Shows Inflation Already Here - CNBC

This report from Walmart shows the connection between quantitative easing and the ensuing liquidity trap that follows. In other words, put too many cheap dollars in the system and prices go up because the value of the dollar goes down. Time to stop the printing press at the Fed.

US, South Korea trade accord not a done deal - The Boston Globe

2010-11-13T07:10:00.000-05:00

US, South Korea trade accord not a done deal - The Boston Globe

"Several major nations continued to accuse the Federal Reserve of deliberately devaluing the dollar last week in an effort to put the costs of America’s competitive troubles on trading partners, rather than taking politically tough measures to rein in spending at home."

As American citizens, we should take notice of this legitimate criticism regarding our current fiscal policy.

How the Presidency Is Invading Your Home - Ben Lieberman - Mises Daily

2010-11-10T08:50:00.000-05:00

How the Presidency Is Invading Your Home - Ben Lieberman - Mises Daily

Do you own a home? Maybe you should you think twice before plugging in that new appliance. How much of your money is being siphoned through the pipes or the sockets?

Barack Obama can’t escape economic debate - John Maggs - POLITICO.com

2010-11-10T08:38:00.001-05:00

Barack Obama can’t escape economic debate - John Maggs - POLITICO.com

This debate is not limited to the President. Our nation, especially the new Congress, cannot escape this debate. The Fed's announcement to print $600 Billion in new money is a concern Congress needs to address through oversight hearings.

The Assault on Gold

2010-09-25T17:17:00.004-04:00

I wanted to title this post, "The Assault on Reason," but I will not have to. The lack of reason will speak for itself. On September 23 the US House Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection held a hearing on HR 6149, The Coin and Precious Metal Disclosure Act, introduced by Congressman Anthony Weiner (D-NY,9th) to regulate the gold industry. At the hearing, Weiner stated, "Goldline rips off consumers, uses misleading and possibly illegal sales tactics, and deliberately manipulates public fears of an impending government takeover – this is a trifecta of terrible business practices..."

When making this statement, Weiner was of course drawing on his own deep business experience of 0 years and Congress's exemplary record of economic policy making. I'm still curious why a successful business of 50 years with a Better Business Bureau rating of A+ has to explain itself to a collection of dolts with an approval rating of 22.7 percent.

The sad thing about Wiener's legislation is the veiled attempt to convince the public this is for their own good and that Congress is protecting the consumer. Weiner seems to think that the value of gold is somehow a closely guarded trade secret. It's so secret in fact that you can only find it at Google Finance, the Wall Street Journal, CNBC.com, the Financial Times, The Investor's Business Daily, the Washington Post, the New York Times, the LA Time, the Chicago Sun Tribune, Marketwatch.com, and another 213,000,000 sites that are found after one enters, "value of gold" in any garden variety search engine. Frankly as a consumer, I'd much rather see Weiner introduce legislation protecting me from Congress by restricting Congressional actions to the District of Columbia.

What Weiner fails to realize is the cause an effect of why gold prices have soared. Gold did not shoot up in value because of a random bubble or misleading advertising. It increased in value because of an idiotic financial policy that flooded the market with cheap money while at the same time empowering under capitalized individuals to buy things they could not afford. Eventually, the castles that were build on thin air collapsed, the dollar tanked, the market crashed and people looked for refuge in a stable investment. Gold served as that investment because its value is not tied to paper currency or monetary policies.

Gold, like other commodities, has an inverse relationship with the market. When the dollar falls, gold goes up. Additionally, buying and selling gold is no different than buying or selling anything else. There is really no mystery to it. You can buy physical bullion or you can buy interest in gold through stocks like Central Fund of Canada (CEF).

Goldline is just one of many companies that sell gold. However, Goldline has celebrity endorsement from Glenn Beck, Laura Ingraham, Mark Levin, and Fred Thompson; all are conservative pundits. So perhaps Weiner's problem is not Goldline at all, but the fact that Goldline's endorsers are not fans of Democrats or Obama. Is this Weiner's way of shutting down and desecrating the gold industry? Is this really what Congress needs to be doing? Wading into the market place again and regulating an industry out of business? Lucky for us Goldline could just move offshore and join the millions of other non-US companies buying and selling to consumers without ridiculous restrictions. Weiner has given me another reason to consider why I should move my life offshore.

The Growing Issue of Expatriation and Why it Matters

2010-09-20T22:11:00.003-04:00

Expatriation has gotten a lot of press this year and for good reasons. According to the United States Department of Treasury, in the quarter ending December 31, 2009, 502 United States Citizens gave up their citizenship. Based on data provided by the DOT, that is more expatriations in a single quarter than the previous seven combined. Is this the beginning of a trend? Are Americans with wealth and mobility leaving? It appears that the answer is a disturbing, yes.

Many Americans are driven to the subject of expatriation because of taxes. In some cases expatriation makes sense. You are an American living and working overseas and you have decided to stay in your host country. Because US taxes apply to your income irrespective of where it is generated, it makes sense not to subject your pay check to duel taxation, thus you expatriate and live happily ever after. Another category of expats has traditionally been the billion dollar club who choose a tax home with less tax rules, and let’s face it, less taxes on their income. But for the most part, the number of annual expatriations was pretty small and interest in the subject was also small.

2009 and 2010 data from the Federal Register, DOT, and news articles provides evidence that thoughts on expatriation are changing. After conducting an Internet search of “expatriation and tax,” I was surprised by the volume of information there is on how to expatriate and the number of businesses that provide a service offering on expatriation. This begs the question, what do Americans think of their citizenship and has American citizenship become a burden, rather than an asset, in a dynamic global economy?

It is pretty clear that more taxes are on the way. Passage of health reform, financial industry reform, and another government funded jobs creation bill are indicators that the government will need additional revenue to achieve these goals. Even with the Bush-era tax cuts expiring, the tax revenues received from the 4-5% increase will probably not be enough to cover the costs. In short, the government is going to have to consider higher taxes and these taxes will be aimed at the “rich.” More and more I am seeing in the press, on social network sites, on tv news shows, and talking among peers that there is a strong belief among certain sectors that American tax policy needs to become a “soak the rich” policy. The theory is that the rich are unfairly sitting on their wealth in the form of investments and savings and therefore should face higher tax rates to forcibly remove wealth from them and place that money back into society.

So who are these rich Americans we are supposed to soak? Well if you are collecting taxes, the rich are those who earn over $250,000.00 a year. When the Bush tax cuts expire, tax on this income group will return to 39.6% of their income. In the opinion of some, this is still not enough and this group needs to be taxed more. But income earners in this range are neither deaf nor blind and they are asking the question, what is my incentive to staying in America or remaining an American at all? If the article in today’s Los Angeles Times is any evidence, some are considering leaving and it’s not just the billionaires. The LA Times today reported on an editorial in the Wall Street Journal written by Newport Beach resident Glen Esnard. In his editorial, Mr. Esnard stated the following, “My family isn't wealthy. I have no funded retirement plan save Social Security, if it is there when I need it. I have no guarantee of permanent health care. I am paying off school loans for our three children. A meaningful number of my friends have lost their jobs, and all who are still employed, including my family, have taken significant pay reductions. . . . This is a classless recession, at least in my experience. It is hitting everyone.

Yet those of us who make $250,000 or more are vilified and held accountable for solving our government's penchant for spending more than it takes in so that politicians can buy votes. We already pay more in taxes than 98% of the population, particularly the nearly 50% of eligible voters who pay no federal income tax. The President wants us to pay more, and he frames it in a way that casts us as not yet carrying our fair share of the burden.”

While Mr. Esnard’s arguments are not new to the tax debate, it is his next statement that really caught my attention because of its blunt and unmistakable meaning.

“Apparently our president thinks that living in America is so wonderful that we will never leave, despite being directly attacked and held responsible for the political class's inability to constrain its desire to buy votes with our money. He should think again.”

Mr. Esnard’s comments should not be lumped in with Hollywood types who like to threaten to leave if candidate X wins this election. I say this because Esnards of this world are not upset at a political party on social or moral issues, but they are tired of the entire process, both political parties and their collective ineptitude. The Esnards of the world will not only be leaving the United States physically, they will be leaving as both a citizen and a tax payer. What’s important to take from this is that the Esndards are not billionaires, multimillionaires, and in some cases not even millionaires. They upper middle class Americans who are beginning to wonder how the US is going to pay off its sizable debt and more importantly, who is going to do it. For some the long term calculus is simple, I’m out of here and best of luck with your trillion plus debt. So this begs with question, what does the American government do when the citizens it intends to soak move to less taxed shores? Perhaps 1933 will shed some light on this on this question.

In 1933 President Roosevelt issued Executive Order 6102. Executive Order 6102 required U.S. citizens to deliver on or before May 1, 1933 all but a small amount of gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve, in exchange for $20.67 per troy ounce. Under the Trading With the Enemy Act of October 6, 1917, as amended on March 9, 1933, violation of the order was punishable by fine up to $10,000 ($167,700 if adjusted for inflation as of 2010) or up to ten years in prison, or both. Some people fear that there are enough similarities between our current economic situation and 1933 to justify fear about asset confiscation, i.e. a weak dollar and strong gold value.

Had I not read title V of the recently passed HIRE Act of 2010, I would say that confiscation folks are being rash. But come January 1, 2011 the HIRE Act will make it far more difficult for Americans to legally place assets under the control of foreign banks, holding companies, etc that have no obligation to obey any order from the US government to turn over assets that are being held legally. In addition, Congress has decided to hold a September 23rd hearing on gold selling companies and if they should be regulated. Such an act, irrespective of its intent, only adds fuel to the fire.

So putting this all together, what are Americans who make $250,000.00 per year supposed to think? It seems to me that some Americans are simply saying it might be easier to pull the plug than fight the good fight in a bloated system of bureaucrats and politicians. If American citizenship has become that devalued, then Congress has bigger issues to be concerned about than gold and the value of the dollar.

Carts and Horses by Peter Schiff

2010-08-26T22:38:00.000-04:00

Carts and Horses by Peter Schiff

In a CNBC debate last week, former Labor Secretary Robert Reich presented a set of contradictory beliefs that unfortunately reflect the conventional wisdom of modern economists. In a discussion with Wall Street Journal columnist Stephen Moore, Reich correctly and comprehensively listed the reasons why American consumers could spend so lavishly before the crash of 2008 and why they can no longer keep up the pace. But instead of making the logical conclusion that former levels of spending were unsustainable and that spending should now reflect current conditions, he advocated that government take on additional debt so that tapped out consumers can spend like they used to.

Jim Rogers: The Federal Reserve Is a Pawn Shop

2010-08-12T07:17:00.000-04:00

Jim Rogers: The Federal Reserve Is a Pawn Shop

Brain Candy

2010-08-11T20:46:00.002-04:00

Horrahh to someone that actually gets it.

Mr. Ryan, inform the Emperor [King Barry] that he's about to get de-clothed

How to Protect Your Savings the “Street Smart” Way

2010-08-07T20:01:00.000-04:00

How to Protect Your Savings the “Street Smart” Way

More Rich Americans Renounce U.S. Citizenship for Lower Taxes by Jonathan Berr

2010-07-24T08:55:00.000-04:00

More Rich Americans Renounce U.S. Citizenship for Lower Taxes by Jonathan Berr

A U.S.-born resident of Ireland recently came into some money after he and his wife sold a farm they inherited from her parents. Instead of enjoying his windfall, the man is furious at the Internal Revenue Service for penalizing him for running afoul of the agency's confusing regulations regarding the reporting of income from foreign bank accounts. He is so mad, according to his attorney, Jane Bruno, that he's considering renouncing his U.S. citizenship.

Mises Economics Blog

2010-07-19T21:44:00.000-04:00

Remembering Longshoreman Philosophy

by GARY GALLES

July 19, 2010

July 25 marks the 1902 birth of Eric Hoffer, known as the “longshoreman philosopher” for the manual labor he performed for most of his life. In eleven books, beginning with The True Believer, the Presidential Medal of Freedom winner focused on the allure of a seemingly ennobling collective cause, and the often tyrannically employed coercive power that goes with it, to those who are discontented, particularly intellectuals. He also focused on fulfilled, creative individuals, who can only flourish under freedom. Given the accelerating encroachment of collectivist government policies into Americans’ already-adulterated freedoms, his insights into freedom merit renewed attention:

“The aspiration toward freedom is the most essentially human of all human manifestations.”

“Freedom means freedom from forces and circumstances which would turn man into a thing…”

“The basic test of freedom is perhaps less in what we are free to do than in what we are free not to do.”

“The real ‘haves’ are they who can acquire freedom, self-confidence, and even riches without depriving others of them. They acquire all of these by developing and applying their potentialities. On the other hand, the real ‘have nots’ are they who cannot have aught except by depriving others of it…[who] feel free only by diminishing the freedom of others…”

“People unfit for freedom — who cannot do much with it — are hungry for power. The desire for freedom…says: leave me alone and I shall grow, learn, and realize my capacities.”

“A man is likely to mind his own business when it is worth minding. When it is not, he takes his mind off his own meaningless affairs by minding other people’s business.”

“Nothing so offends the doctrinaire individual as our ability to achieve the momentous in a matter-of-fact way, unblessed by words.”

“[T]he intellectual…derives his sense of usefulness mainly from directing, instructing, and planning — from minding other people’s business — and is bound to feel superfluous and neglected where people believe themselves competent to manage individual and communal affairs, and are impatient of supervision and regulation. A free society is…a threat to the intellectual’s sense of worth…Any social order that can function with a minimum of leadership will be anathema to the intellectual.”

“The ability to get along without an exceptional leader is the mark of social vigor.”

“[M]en of power…their main purpose is the elimination or neutralization of the independent individual…every device they employ aims at turning men into a manipulable ‘animated instrument’ which is Aristotle’s definition of a slave.”

“The taint inherent in absolute power is not its inhumanity but its anti-humanity. “

“[A]bsolute power is the manifestation most inimical to human uniqueness.”

“All leaders strive to turn their followers into children.”

“Absolute power corrupts even when exercised for humane purposes. The benevolent despot who sees himself as a shepherd of the people still demands from others the submissiveness of sheep.”

“We all have private ails. The troublemakers are they who need public cures for their private ails.”

“The danger inherent in reform is that the cure may be worse than the disease…reformers are not on guard against unpredictable side effects which may divert the course of reform toward unwanted results. Moreover, quite often the social doctors become part of the disease.”

The collectivist mindset that Eric Hoffer so cogently analyzed is increasingly being echoed today, presenting another threat to freedom. But no amount of power to coerce others can make a life meaningful for good. As Hoffer realized, only freedom can provide that opportunity. It does not guarantee a meaningful life; only the possibility. But to create or preserve that possibility, we need to bolster freedom. As he recognized, “Every device employed to bolster individual freedom must have as its chief purpose the impairment of the absoluteness of power…[or] the defeated individual, however strong and resourceful, can have no refuge and no recourse.”

Marc Faber Expects a Return to Massive Quantitative Easing by October

2010-07-17T22:46:00.000-04:00

Marc Faber Expects a Return to Massive Quantitative Easing by October

Marc Faber the Swiss fund manager and Gloom Boom & Doomeditor said the US is so full of debt, stuck in a period of slow growth and high enemployment, that the Federal Reserve will soon have to revert back to crisis era policies.

Speaking to Bloomberg in a live interview Thursday, Faber said: " I am conviced the Fed will soon implement further quantitative easing," adding "and massively so".

Trashing Obama's Economic Team

2010-07-13T08:01:00.000-04:00

Trashing Obama's Economic Team

Reagan White House budget guru David Stockman talks to Lloyd Grove about the dangers of ignoring the deficit, why Bernanke, Geithner and Summers must be fired ASAP—and his support for Ron Paul.

RealClearPolitics - McChrystal Reveals White House Divide

2010-06-24T20:54:00.000-04:00

RealClearPolitics - McChrystal Reveals White House Divide

EJ Dionne of the Washington Post exposes the left's real motive for canning McChyrstal, he made Obama look silly, indecisive, unsure, tepid, weak, and incompetent. How dare a plebeian such as McChrystal call The One into question! But here's the catch, the President can only blame himself for this. He is the Commander-in-Chief and so far has not lived up to that role. Instead, with the help of his surrogates in the press, Obama is playing the victim...again. The most powerful man in the world made a victim by his subordinate? Truth be told this issue should have been dealt with a long time ago. Why didn't the President know what was going on with arguably most important Command and General in the military? Additionally, Why didn't Petraeus, as CENTOM Commander, McChrystal's boss end this problem? Was no one aware that all was not well in paradise, and if not, why not? The answer: because Obama's eye was not and has not been on the ball and no one has called him on it. In fact, because a Democrat is in the White House, there are few in the press corps willing to hold Obama accountable when problems arise or when American deaths per month sky rocket. Had this been any Republican the press would be screaming to see coffins, the inside of coffins, access to grieving families, etc...etc. As I've said before, Cindy Sheehan was dead on when she accused the anti-war movement of being anti-republican, not anti-war, after it all but dried up after Obama took office. In short, she discovered what we all knew: they were a bunch a leftist hacks who returned their cause celebre to the prop room after the election. But back on point, Obama fired McChrystal because like his predecessor, General David McKiernan, McChrystal informed the President that he was living in a fantasy land concerning the war and that answer just does not fit the rainbows and unicorns strategy.

Sadly what he have here is a situation that benefits only the Taliban. On the eve of battle the surge is stalled thus giving the Taliban more time to re-arm, re-fit, recruit, work with drug dealers, spread propaganda and influence the Karzai regime even further. Additionally, the President now finds himself minus one four star general with counter insurgency experience and plus two confirmation hearings: one for CENTCOM and one for Patraeus as ISAF commander. All this is a monumental waste of time and another example of our clown like behavior for all the world to see. Someone put a tent over DC and call it a circus.

McChrystal out; Petraeus picked for Afghanistan - Yahoo! News

2010-06-23T19:52:00.000-04:00

McChrystal out; Petraeus picked for Afghanistan - Yahoo! News

Did anyone inform the President that he just fired McChrystal and demoted Patraeus? This guy is simply awful and so are his advisers...what a bunch of clowns.

Hot Air » Obama: McChrystal showed poor judgment but the mission is paramount

2010-06-22T21:24:00.000-04:00

Hot Air » Obama: McChrystal showed poor judgment but the mission is paramount

The mission is paramount....No it's not. If it is so paramount why have you ignored your last 2 Commanding Generals in Afghanistan??? Oh that's right, because your mission is not "victory." It's quitting at a convenient time to be determined.

Hot Air » Gibbs on McChrystal: All options are on the table; Update: McChrystal offers resignation? Update: Or did he merely offer to resign?

2010-06-22T21:20:00.001-04:00

Hot Air » Gibbs on McChrystal: All options are on the table; Update: McChrystal offers resignation? Update: Or did he merely offer to resign?

All options are on the table for McChrystal, but not for Iran...very inspiring.

W.H. signals Gen. McChrystal's job on the line - Gordon Lubold and Laura Rozen - POLITICO.com

2010-06-22T20:18:00.000-04:00

W.H. signals Gen. McChrystal's job on the line - Gordon Lubold and Laura Rozen - POLITICO.com

Obama lost this fight when he "summoned" McChrystal to Washington. When you have to prove that you're charge, all you've proved is that you're not in charge of anything. As Commander-in-Chief, Obama is simply blundering along toward an epic fail in Afghanistan.

Where are the promised border troops?

2010-06-22T19:52:00.000-04:00

Where are the promised border troops?

Mr. Montini asked, "Where are the promised border troops?" I'm not sure why he asked. This is a President who has politicized everything from health care to warfare. Immigration is a hot button issue and the promised troops will remain an illusory promise.

Op-Ed Columnist - Budget Deficits - Spend Now, Save Later - NYTimes.com

2010-06-22T19:48:00.000-04:00

Op-Ed Columnist - Budget Deficits - Spend Now, Save Later - NYTimes.com

How many times do we have to fail at the short term spending game before people get it....real wealth is realized through saving, not spending.

Will: Obama, Oil, and Rhetorical Excess - Newsweek

2010-06-22T19:46:00.000-04:00

Will: Obama, Oil, and Rhetorical Excess - Newsweek

George Will provides another excellent article on why the current President is simply an empty suit.

If You Can't Budget, You Can't Govern

2010-06-22T19:44:00.000-04:00

If You Can't Budget, You Can't Govern

I find the irony of the Democrats not passing a budget this year amazing. After all the years of claiming a new era, the Democrats are incapable of producing a budget. Gerry Connolly, D-Va., told the Los Angeles Times, "Name one person who won or lost an election because they didn't get a budget resolution passed." Let's hope name #1 is Gerry Connolly.

Living in the Economic Past by Bill Sardi

2010-06-17T19:44:00.000-04:00

Bill Sardi does his best to convince his neighbors of the even tougher economic times ahead.

Living in the Economic Past by Bill Sardi

Busted: Governments, Pensions, Unions by Gary North

2010-06-16T06:56:00.000-04:00

Busted: Governments, Pensions, Unions by Gary North

We are seeing the end of an era. The trade union movement in the United States has declined for the last 30 years. It is now in its final stages. The only area of the economy in which unions still have any degree of clout is in government. The union movement barely functions outside of government employment. Today, as states and municipalities face massive deficits, the union movement is threatened with destruction.

Unwelcome Correction Mistaken for a Double-Dip Recession

2010-06-10T15:01:00.000-04:00

Unwelcome Correction Mistaken for a Double-Dip Recession

Who believes in the ‘recovery’ now?

The Phantom Recovery by Peter Schiff

2010-06-08T06:49:00.000-04:00

The Phantom Recovery by Peter Schiff

Rather than a recovery, the jobs data seems to indicate that we are still mired in the first economic depression since the 1930s.

World Collapse Explained in 3 Minutes

2010-06-04T21:51:00.000-04:00

Obama faults GOP, BP as he defends agenda | D.C. Now | Los Angeles Times

2010-06-02T18:18:00.001-04:00

Obama faults GOP, BP as he defends agenda | D.C. Now | Los Angeles Times

Obama continues to blame the previous admin and play his single string guitar about the Republicans. Obama has been in office over a year, about 15 months. Oil has been gushing for 1/15 of your Presidency, nice one.

'We Will Never Apologize for Defending Ourselves' - Video - FoxNews.com

2010-06-02T18:11:00.000-04:00

'We Will Never Apologize for Defending Ourselves' - Video - FoxNews.com

I'm with Benjamin on this one.

Right on schedule for the Summer Blockbuster

2010-05-27T17:15:00.004-04:00

Who acted stupidly? It's "Chicago on the Potomac," starring Barry as the "Prevaricator-in-Chief."

I understand it's difficult to memorize your lines on such short notice, but try to reduce the term "shortly" so that we all have time to review and judge your performance. You never know, you may have already qualified for an Academy Award.

Warning: Crash dead ahead. Sell. Get liquid. Now.

2010-05-27T06:20:00.001-04:00

http://www.marketwatch.com/story/crash-is-dead-ahead-sell-get-liquid-now-2010-05-25?pagenumber=2

Obama to aides: 'Plug the damn hole' - The Hill's Blog Briefing Room

2010-05-25T22:49:00.000-04:00

Obama to aides: 'Plug the damn hole' - The Hill's Blog Briefing Room

Funny, I was about to give Barry the same advice. Can you imagine the outrage if Bush were President. What a joke American journalists are.

On my Command, Hurry up and push the USA over a cliff

2010-05-25T19:20:00.007-04:00

Have you ever wondered why the polls are showing a precipitous drop in King Barry I approval rating? It's because of his deep lust for Europe and its "Cradle to Grave" mentality. But, even more disturbing is the cronies he has appointed to cabinet positions. It's basically a Merry-go-Round of buffoons.

As Barry care starts to leak, there's more and more of a pungent stench emitting from the Merry-go-Round. Take for example Kathleen Sebelius and her stellar track record as a public official. Never mind that this is going to cost too much, just shut up and do it already.

So, again, looking back at my posts, I'm building a case to sue the Prevaricator-in-Chief.

Where's Mr. Morton from School House Rock?

2010-05-24T19:55:00.004-04:00

Read? Why? It's not really a requirement in my job description, is it? Thankfully I can always count on my staff to brief me up on monumental policy.

Or, did they really read the bill and just realize that it's Constitutionally sound?

Why silver could soon take off - MoneyWeek

2010-05-22T09:57:00.000-04:00

Why silver could soon take off - MoneyWeek

Investment demand for silver has risen in recent years too as investors
concerned about the value and safety of property, equities and deposits
allocated funds to the finite commodities that are silver and gold. More
recently, there are increasing concerns about the value of paper currencies
themselves which is leading to further diversification into hard assets and
precious metals.

My Way News - A month in, outrage over Gulf oil spill grows

2010-05-21T18:05:00.001-04:00

My Way News - A month in, outrage over Gulf oil spill grows

Did someone say Katrina? Nice job King Barry! Is that oil, or is someone stepping the crap left by you and your kleptocrats?

Eating Cake

2010-05-20T22:34:00.003-04:00

Today stocks dropped one year's worth of value. Close to twenty percent of Americans are unemployed. Of course King Barry I and Michelle Antoinette Obama are dealing with this by throwing lavish state dinners for foreign leaders who lecture us on American law. Wow, that is change.

More RuPaul

2010-05-20T20:06:00.002-04:00

Yeah, ah, sashay

Michelle Obama - Yahoo! News Photos

2010-05-19T22:36:00.000-04:00

Michelle Obama - Yahoo! News Photos

RuPaul sighting!

I don't need no stinkin job

2010-05-16T20:11:00.002-04:00

Hey, San Fran Nan, I'll go with the "Whatever" category. No matter what, I know you'll always have my back. What happens if everyone quits their job, can we just use Monopoly money instead?

How does your face hold up so well?

The Dollar Rally Is Hugely Bullish for Precious Metals by Stewart Dougherty

2010-05-15T07:46:00.000-04:00

The Dollar Rally Is Hugely Bullish for Precious Metals by Stewart Dougherty

For many years, the common viewpoint has been that an inverse price relationship between the United States Dollar and gold constitutes the First Monetary Commandment, and that this Commandment is chiseled into a stone tablet before which markets must genuflect. This false and misleading

Hot Air » Hey, let’s build a mosque at Ground Zero; Update: 9/11 families oppose

2010-05-14T16:47:00.000-04:00

Hot Air » Hey, let’s build a mosque at Ground Zero; Update: 9/11 families oppose

Super! Twin Towers replaced by Terror Tower.

Welfare surge kills initiative to prosper | detnews.com | The Detroit News

2010-05-13T13:42:00.000-04:00

Welfare surge kills initiative to prosper | detnews.com | The Detroit News

More Shell games from the Tax-ocrats

2010-05-12T21:59:00.002-04:00

Interesting that the Cap & Tax bill now falls under the moniker of, well, "American Power Act." It's all right here

Without Bush, media lose interest in war caskets | Washington Examiner

2010-05-11T21:08:00.001-04:00

Without Bush, media lose interest in war caskets | Washington Examiner

In 2009, the Washington Examiner wrote, "Without Bush, media lose interest in war caskets..." How true that is. Raise your hand if you knew that 29 American soldiers lost their lives in Afghanistan and Iraq in April? The press is acting like no one has died in Iraq or Afghanistan under Obama. In their estimation, unicorns have returned to once again graze along the Tigris or in the Hindu-Kush under beautiful rainbows. Please keep in mind what my good friend Joe Pa always tells me, "If you get national security wrong, nothing else matters."

Honor the Fallen

State Senator Sylvia Allen responds to SB1070 - The Cholla Jumps

2010-05-11T19:16:00.000-04:00

State Senator Sylvia Allen responds to SB1070 - The Cholla Jumps

Dear State Senator Allen,

This is an excellent explanation of SB 1070, but it doesn't matter. You're not going to convince anyone in the main stream media on this issue because you're not part of the New York Times "smart set." You don't espouse your leftist point of view from 30 floors above the dirty streets or from your $75,000 SUV complete with an Obama sticker. You don't have a Barney's in your district and you probably have less than 15 Starbuck's coffee shops. By definition, you're a grit and your opinion does not matter. What you do have is a frightened constituency, a lawless international border, dead cops, dead ranchers, and viscous drug gangs to deal with. If you were enlightened like the smart set, who live about 2,000 miles from your problem, then you'd know to let the Federal government handle this issue through a series of round tables, blue ribbon panels, commission reports, ambiguous legislation, and finally, maybe, just maybe Obama might even have a border summit in your district and let you appear...silently.

David Cameron is the new Prime Minister - Telegraph

2010-05-11T18:42:00.000-04:00

David Cameron is the new Prime Minister - Telegraph

This will be an interesting marriage of the Conservative Party led by David Cameron and Nick Clegg of the Liberal Democrats. They were effective as a shadow government, but now they have to govern. Clegg and Cameron have different views on many issues. I hope they can find resolution that is good for Britain and Europe. Good luck, gents.

Hollywood goes to SCOTUS

2010-05-10T22:29:00.003-04:00

So, who am I?

Before my nomination to SCOTUS, I starred in the 1993 movie "So I Married an Axe Murderer."

Afterwards, I wait for what the confirmation process brings me

Greece—US Faces Same Economic Woes As Greece: Marc Faber - CNBC

2010-05-08T08:10:00.000-04:00

Greece—US Faces Same Economic Woes As Greece: Marc Faber - CNBC

Is Sovereign Debt Crisis Contained to Subprime? by Peter Schiff

2010-05-08T08:08:00.000-04:00

Is Sovereign Debt Crisis Contained to Subprime?

Peter Schiff explains that there's a lot more to this debacle.

Ah, I need a lawyer

2010-05-06T18:45:00.004-04:00

Why?

If it wasn't for the fact that we live in a very litigious society, I may not have even entertained this thought. That said, however, peoples' decisions and policies affect everyone, and when you have King Barry I--or POTUS--assuring everyone that there's no way Socialized medicine will harm anyone in any sense, then what's not to love?

Well, as I've discussed many of times in the past, it's the unintended consequences that the government never considers with any modicum of seriousness.

So, because of this, I may just consider moving forward.

An Even Better Trade of the Decade by Bill Bonner

2010-05-04T10:12:00.002-04:00

Bill Bonner was one of several excellent speakers I saw this past weekend at an Casey Research investment conference in Las Vegas (I didn't lose any money. Hooray!). I had a chance to meet Mr. Bonner while walking around during a break and he summed up our problems by saying, "We're just spending too much money." Sounds simple enough, but for politicians, it's as complicated as rocket science. Here is an excerpt of his presentation that he posted on his Daily Reckoning website, which is an excellent (and free) daily newsletter on the economy.

An Even Better Trade of the Decade

Gold Report - John Williams: A Hyper-Inflationary Great Depression Is Coming

2010-04-30T20:53:00.000-04:00

Uh oh!

Gold Report - John Williams: A Hyper-Inflationary Great Depression Is Coming

Running off a Cliff

2010-04-28T20:21:00.003-04:00

IBD sums up the Democrats behavior well.

Congress, are you paying attention?

2010-04-28T20:21:00.001-04:00

Spain downgraded, Europe debt crisis widens

Spain's bond rating has been cut on fear of continued economic sluggishness. "Given its lack of competitiveness and the grim outlook for domestic demand the government will need to announce further fiscal measures if it is to make serious inroads into the deficit...."

Gold Report - All Aboard the Gold Train

2010-04-28T19:14:00.000-04:00

Gold Report - All Aboard the Gold Train

Since early 2009, we've written about the super-bullish long-term cup and handle pattern in gold. It dates back to 1980 and has a logarithmic target of about $2,100. We noted that previous cup and handle patterns in gold all reached their logarithmic target. We expect that this move to $2,100 will be the recognition move that awakens the masses to the gold bull market and the reality of severe inflation in the near future.

Speaking of the near future, the relative strength of gold in the face of a strong USD (or weak euro) is one big hint that this recognition move is around the corner. We've noted this before and it is important to explain to new readers. Gold priced in foreign currencies has been leading gold in USD terms. It is true for the entire bull market and is quite evident in just the past few years.

Viva Las Vegas!

2010-04-27T21:57:00.004-04:00

This weekend I'll be attending the Crisis and Research Summit sponsored by Casey Research. I look forward to hearing two of my favorite investment gurus, Bill Bonner and Doug Casey, as well as Judge Andrew Napolitano, whose program, FREEDOM WATCH, is now going from online to television due to its rising popularity.

The chance to get out of the office to meet like-minded people in a forum such as this is long overdue. Of course, I guess I could always expatriate myself, but that's a bit drastic for someone like me.

Greek Bonds Rated as "Junk"

2010-04-27T17:19:00.001-04:00

The Greek bond has been cut to junk by S&P. American policy makers really need to take a serious look at this. While this is bad news for Greece, it is proof that we are in a global financial crisis where hard decisions are finally being made. American people have this one chance to see for themselves the logical end of a cradle to grave entitlement scheme. It sounds good, but it is not sustainable. American bonds and Greek bonds are not too far from sharing the same fate.

Obama’s Financial Reform Package

2010-04-27T17:18:00.000-04:00

Obama is pushing financial reform package to rein in Wall Street, while at the same time arguing the need for a “thriving economy.” Are these goals achievable through the means laid out in his reform push? The answer is… it depends. Depending on what kind of legislation that Congress agrees to move will determine a great deal. If the financial reform debate looks anything like the health reform debate, who knows what we’ll get. Health reform turned out to be a Frankenstein bill that should never have been passed or signed. The new law is a combination of awful ideas from the House and Senate mashed into one package. Even the New York Times is now running stories on the long term consequence of the health reform law by citing failures baked into a piece of legislation that was haphazardly crafted and obviously not read by the politicians responsible for it.

For a very brief overview, the financial reform bill currently in the Senate under the jurisdiction of Senator Chris Dodd would create a $50 billion slush fund for payments to failing banks; would create an independent regulator within the Federal Reserve that would guard consumers against abuse and deception in such instruments as mortgages, credit cards or loans; and would cement the Volcker Rule into statute.

The mere fact that this bill is under Dodd’s jurisdiction is problematic enough. Dodd has questionable ties to the financial community and has already apologized for trying to inappropriately influence bail out legislation for his AIG buddies.

The $50 billion dollar slush fund is, in my opinion, a bait and switch. The bait is that the slush fund is filled by Wall Street and that money is used to help failing institutions. Fair enough, but eventually every account runs dry and in Washington $50 billion is not that much. If the Wall Street slush fund is anything like the proposed asbestos slush fund that was defeated in 2007, then eventually tax payers will be on the hook for filling the Wall Street fund once the original $50 billion is expended. That is, and should be, a non-starter on both sides of the Capital.

Another regulator in the Fed to make sure people read their mortgages is just a sad statement. People who make major purchases need to ensure they are getting what they want. If you sign a legally binding agreement without knowing what’s in it, then you bear the responsibility. If words like hereinafter confuse you, hire a lawyer and spend a little extra to ensure your large investment is not a ticking time bomb. Markets cannot sustain the systematic cancellation of large contracts because consumers did not do their due diligence.

The Volcker Rule seems a little draconian to me. It makes banks little more than holding tanks by not allowing the bank to try and make money as well as storing it. But Mr. Volcker was on to something. The banks are using our money. I’m wondering if maybe there is a compromise position on this matter that can be reached. In Vegas, casinos cannot have more chips in circulation that money in the vault. Perhaps, banks should have a similar rule so they can make their customers whole if they are going to gamble.

At the end of the day, what bothers me about financial reform is Obama’s rhetoric. It strikes me as overly simplistic and empty. For example, Obama stated, "A free market was never meant to be a free license to take whatever you can get, however you can get it," This comment is a sadly disingenuous statement for a President who was a law professor at the University of Chicago, one of America’s best law schools. While the President is constitutional scholar, even constitutional scholars know that the whole law of contracts is summed up in his statement. The law of contracts exists to prevent one party from maneuvering at the expense of another. Or in simpler terms, contract law enforces legal promises. When parties do not play by the rules, the injured party can seek legal and equitable remedies, and in criminal cases, the state can seek to prosecute as well. What our markets do not need is another bombastic over reaction based on a sophomoric reasoning: All Wall Street employees are bad…all government regulators are good. What we really need is to start prosecuting white collar crimes, especially financial ones. How many people went to jail over ENRON? Not enough and therein lies the problem. We don’t need new laws; we need to enforce the ones we have.

An Open Letter to Representative Grijalva

2010-04-27T17:16:00.001-04:00

Dear Congressman Grijalva,

Your request that the Federal Government should not cooperate with the Arizona State law concerning immigration enforcement should be easily achieved. Currently, the Federal Government fails to cooperate with Federal law on the subject of Immigration. 11 million illegal aliens and growing, murdered police officers, frightened citizens, a mountain of drugs and the March 2010 murder of Robert Krentz should be enough evidence to console you at night that the Federal Government has no intention of cooperating with anyone on the subject of immigration. Thank you for your leadership on this matter.

Swine Flu Pandemic is Fake, German Magazine Reports

2010-04-22T10:32:00.000-04:00

Swine Flu Pandemic is Fake, German Magazine Reports

This is yet another example of extreme corporatism at work, something Big Pharma is an expert at undertaking. I have no problem with drug companies existing. I do, however, have problems with these companies using the government to force the use of their products upon the citizenry. But in the end, I'm happy to say that I was one of two people in my office who refused to get the Swine Flu vaccine.

RealClearPolitics - Politics - Apr 20, 2010 - House abandons DC vote bill

2010-04-20T18:10:00.000-04:00

RealClearPolitics - Politics - Apr 20, 2010 - House abandons DC vote bill
DC voting rights is an issue which unfortunately Congress can't help but screw up. The issue of whether or not people get to vote in DC is a red herring. The real question behind DC voting rights is the power of Congress versus the Constitution. Congress is trying to convey the right to vote to the District by passing a statute that is conflicts with the Constitution. Congressional supporters of the DC voting rights act argue that since Congress has absolute control over DC, then Congress can determine if DC get's a vote or not. This legal reasoning is not sound and does not address the many provisions in the Constitution that speak to DC and its voting rights.

Throughout the Constitution, the original framers and the later drafters of the 23rd Amendment made the obvious decision to distinguish between the States and the District when speaking to voting rights. Additionally, reading the Constitution makes it clear that the District was always supposed to be a place of limited Representation. Take for example the provision that states, that DC can have no more electoral votes than the state with least amount. Hence, DC can never (for now) have no more than 3 electoral votes no matter how many people live there. There are other examples, but I don't really feel like looking them up now. The real issue here is that when the provisions addressing DC and representation in Congress were drafted in the Constitution it is important to remember that the drafters constitutionally set the District and the States apart. They are referred to separately and the Constitution limits DC representation in the electoral college.

Voting in DC is not really the issue. Sure, you can make it an emotional plea for this or that, but the real issue is whether Congress will do this right and go through the Amendment Process. This is an issue of power and limits of Congress's power over the lives of the people. This matter needs to be done right out of fairness to the Constitutional process and ultimately to the people of DC and the rest of the country.

23rd Amendment: 1. The District constituting the seat of Government of the United States shall appoint in such manner as the Congress may direct: A number of electors of President and Vice President equal to the whole number of Senators and Representatives in Congress to which the District would be entitled if it were a State, but in no event more than the least populous State; they shall be in addition to those appointed by the States, but they shall be considered, for the purposes of the election of President and Vice President, to be electors appointed by a State; and they shall meet in the District and perform such duties as provided by the twelfth article of amendment.